The pair closed in NY Friday at $1.6495, euro-sterling at stg0.8365. The rate recovered off early European lows of $1.6476, back through $1.6500 and extending on to $1.6515. However, in a week where expectations are growing that the Federal Reserve could raise interest rates sooner than anticipated, the dollar remained supported and the pound drifted back under $1.6500 towards the close. Euro-dollar’s break of $1.3800 provided added momentum as the cross lifted to session highs of stg0.8371, later easing into the close. Cable opened heavy in Asia and gapped to an early low of $1.6460 as traders noted stop hunting in both sterling-yen/sterling-aussie behind the move. An immediate bounce saw the pair recover to $1.6490, however failure to reclaim$1.6500 and euro-dollar drifting lower, the pair settled between $1.6480/90 for the remainder of the session. Strong demand remains on approach to $1.6470 (61.8% of $1.6252-1.6823), ahead of $1.6461 (T-line support off Nov12 lows). Euro-sterling settled around stg0.8370, the rate recovered off pullback lows of stg0.8360 after earlier printing a high of stg0.8383.
